3 Important Tips For Teenagers Opening Up Their First Bank Account
If you're a teenager, you may have never had your own bank account before. Now that you've become older, though, it may be time to gain some financial independence and open your own account. This won't be difficult when you consider these tips.
1. Find the Right Bank
Not all banks work the same regarding how accounts are created. Certain banks will charge more and offer more resources. For this reason, you need to be strategic for which bank you open an account with. First and foremost, try finding a bank that doesn't have an annual charge for having an account with them. Over time, this will save you a lot of money.
You also want to choose a bank that has a lot of accommodating services, such as low-balance text alerts and fraud detection. Finally, the bank you choose needs to be easily accessible, preferably located close to where you live. This will make managing your account much easier over the years.
2. Select an Account Type
When you open a new bank account, there are predominantly two account types you can choose. These include a checking account and a savings account. Both have their advantages depending on your financial goals.
Checking accounts are more for everyday transactions, such as shopping for groceries or filling up on gas. The great thing about these accounts is there are no restrictions for when you can withdrawal. You also don't have to worry about paying any penalties for touching your money either.
Conversely, if you have a large sum of money and want to earn interest off it, you should open a savings account. With this account, you're limited on the number of withdrawals you can make each month.
3. Understand Your Account's Policies & Procedures
So that you don't run into any complicated dilemmas with your newly created account, it's important to be aware of your account's policies and procedures. These can vary from bank to bank, but most policies state a minimum balance. You need to know what this balance is so you can avoid penalty fees.
You also need to be aware of how long it takes for money to end up in your account. So if you need to pay a bill or cover an expense, you know exactly when the money will hit and can thus avoid overdraft fees.
When it comes time to finally open up your own bank account, don't stress. You can make the right decision by knowing how these accounts work and assessing the right details. For more information on finding a checking account with no fees, contact your local bank.